EDP – Energias de Portugal buys US company for US$2.9 billion

28 March 2007

Lisbon, Portugal, 28 March – Portuguese power company EDP will become the fourth-largest wind power operator in the world with the acquisition of US company Horizon Wind Energy for US$2.9 billion, the company’s chief executive said Tuesday in Lisbon.

With the acquisition announced by António Mexia, EDP adds a further 550 megawatts (MW) to its wind power portfolio, and 997 MW of projects that are under construction, and it is estimated that by the end of the year it will have production of 3,800 MW.

Horizon has wind projects totaling 9,000 megawatts, which are expected to be concluded by 2020, said EDP’s chief financial officer, Nuno Alves.

Mexia said that this acquisition “is the biggest transaction carried out by a Portuguese company outside Portugal,” and completely transformed the company.

He added that the operation, which will mainly be financed by a bank loan totaling US$2.5 billion, would not affect shareholder payouts.

The acquisition of Horizon will allow EDP to diversify its renewable energy portfolio as well as spread its business and regulatory risks.

Including projects underway in Europe and the United States, EDP will build an average of 1,000 MW capacity per year. (macauhub)